I’ve been at this on the radio for more than 25 years now. During that time, I’ve seen so many things and trends come and go in the area of you managing your wallet. But occasionally something stands the test of time.
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8 keys to financial empowerment
There’s a perception that finances are so complicated that you simply have to outsource the management of them to someone else. Not so! There’s a professor out of Chicago named Harold Pollack who has a simple plan for your financial empowerment that can be written on an index card:
- Max out your 401(k)
- Buy inexpensive funds
- Don’t buy individual stocks
- Save 20% of your money
- Pay your credit card balance in full each month
- Max out all tax-advantaged saving vehicles
- Pay attention to fees
- Only hire financial advisor who meets fiduciary standards
When you boil this advice down, it all starts with living within your means. Then eventually it becomes about living below your means. Once you do that, it then becomes about having a plan to save money and sticking to it, pay period by pay period, month by month, year after year.
At the core of it, that’s what I want for you: To take control and empower yourself!